HATCH WORK CO.,LTD.【JP:148A】Stock Price

Hatch Work is a company that operates and manages parking lots and commercial spaces while developing IT-enabled services. The company primarily provides online management and search/brokerage services for monthly parking spaces, as well as space services such as rental conference rooms and community offices.

Key customers include parking lot owners, management companies, parking lot users, companies and individuals using conference rooms and offices, and building owners. The company generates revenue through system usage fees and settlement fees from management companies, initial and monthly guarantee fees from users, brokerage fees upon contract completion, as well as usage fees and commission income from subleasing and conference room and office operations.

The business is divided into two main segments: the Monthly Parking Innovation Business and the Building Innovation Business. The former handles "At Parking Cloud" for management companies, the "At Parking" search portal, and subleasing through bulk leasing arrangements. The latter provides rental conference rooms through "At Business Center," conference room sharing, mid-market community offices called "In Square," and building property management and maintenance services.

The company has set expanding revenue and strengthening profitability as its top priorities for the medium to long term. It uses "growth rates of revenue, operating profit, and net income" as key performance indicators for decision-making, and has established "AP Cloud registered vehicles" as its KPI, which is the core of its monthly parking innovation business. As of December 31, 2024, AP Cloud registrations reached 374,032 vehicles. Given that Japan has approximately 61.97 million registered passenger vehicles (as of March 31, 2024), the market has significant room for expansion. The company aims to achieve both revenue and margin growth by expanding AP Cloud adoption.

The company prioritizes investment in AP Cloud, the search portal "At Parking," and space-related businesses such as conference room rentals. Specific initiatives include portal redesign to improve user experience, strengthened sales operations and advertising investment, added management system features, and automated customer service using conversational AI. The company differentiates itself by offering a combined payment processing and delinquency guarantee service that reduces parking management companies' payment collection burden and collection risk. It also improves occupancy rates through features that link parking availability information with contract data, such as "Akimachi."

As a new market strategy, the company aims to develop high-value-added services centered on parking lot data. These include utilizing vacant spaces through EV-equipped parking facilities ("At Parking EV") and short-term rentals ("Weekly"), building new revenue models through partnerships with other companies' data, and developing the "First One Mile Station" concept, which positions residential monthly parking as a mobility hub. On the building innovation side, the company plans to develop new venues in major metropolitan areas and review underperforming locations, executing entry and exit strategies according to market conditions.

The company positions technological innovation as central to its business strategy. Building on its complete digitalization of applications, contracts, and payments launched in 2020, it continues to enhance its reservation system (MICE Platform) and strengthen its data analytics infrastructure to track KPIs—registered vehicles, payment processing transactions, and delinquency guarantees—on a monthly basis. By combining business process automation, IT-driven labor reduction, and operational quality improvement through on-the-job training, the company aims to simultaneously enhance both customer satisfaction and operational efficiency.